07:15 AM EST, 01/06/2025 (MT Newswires) -- CareTrust REIT ( CTRE ) said Monday it closed phase 2 of the large Tennessee portfolio transaction, which involved the addition of thirteen skilled nursing facilities.

The company said the phase was completed through a joint venture with a major third-party healthcare real estate owner, adding that CareTrust contributed about $176 million in combined common and preferred equity investments at an initial contractual yield of about 9%.

CareTrust's existing tenants will operate the newly acquired facilities under long-term master lease agreements-affiliates of The Ensign Group will manage six facilities and seven by affiliates of Links Healthcare Group.

The final facility in the transaction is expected to close in Q1 2025 and will be funded using cash on hand, the company said.